Senior Citizens or Disabled persons of Island County you may qualify for property tax exemption if your principal residence is in Washington State and you meet the requirements for this program. Under the exemption program, your property taxes will be reduced and you will become exempt from all excess levies and Part 2 of the state school levy. The value of your residence and land is frozen in the year first qualified. In order to qualify for this program the following four requirements must be met during the assessment year. If you were to apply for an exemption on your 2023 taxes, the assessment year would be 2022. All forms associated with the Exemption Program can be found in the Reporting/documentation requirements Section.

Available to:

Taxpayers who meet one of the following requirements as of December 31 of the year before the taxes are due:

• At least 61 years of age or older.
• Retired from regular gainful employment due to a disability.
• Veteran of the armed forces of the United States receiving compensation from the United States Department of Veterans Affairs at one of the following:
• Combined service-connected evaluation rating of 80% or higher.
• Total disability rating for a service-connected disability without regard to evaluation percent.

Program benefits:

The qualifying applicant receives a reduction in the amount of property taxes due. The amount of the reduction is based on the applicant's income, the value of the residence, and the local levy rates.

 Qualifying activity:

Own and occupy a primary residence in the State of Washington and have combined disposable income of Income Threshold 3 or less. Beginning in 2020, Income Threshold 3 is based on the county median household income of the county where the residence is located. See income thresholds.

ELIGIBILITY REQUIREMENTS

1. AGE OR DISABILITY

The Applicant must meet one of the following by December 31:

• Age 61 OR
• 80% military service-connected disability, OR
• Social Security-deemed disabled or letter of disability from your doctor (Proof of age or disability, including date deemed disabled, must be submitted with the application) OR
• Be the surviving spouse or domestic partner of someone who was receiving the exemption at the time of his or her death. The surviving spouse or domestic partner must apply to continue the exemption, must have been at least 57 years old in the calendar year the claimant dies, and must otherwise qualify for the program.

2. OWNERSHIP

• The residence must be owned by the applicant at the time the exemption is claimed.
• Qualifying ownership includes fee simple, contract purchase, life estate and lease for life. 
• A home owned jointly by a married couple, a registered domestic partnership or by a co-tenant is considered owned by each spouse, domestic partner, or co-tenant.
• Only one person must meet the age or disability requirements. A co-tenant is a person who resides with the claimant and has ownership interest in the residence. Income information for the co-tenant must be provided.

3. OCCUPANCY

• The applicant must have occupied the residence for more than six months a calendar year. **must be 9 months in the 2019 assessment year**
• Properties used as a vacation home are not eligible for the exemption program.
• Vacant land does not qualify for the program

4. INCOME

• The combined disposable income for the household less any allowable deductions cannot exceed $40,000.
• You must provide documentation for all income received by you, your spouse or domestic partner and any co-tenants.
• *Income Thresholds are reevaluated every five years by the State Legislature and the next adjustment will be made in 2024.

When Applying Include Your

• Photo ID (ID Card, Driver's license or Passport)
• Social Security end-of-year 1099 form
• Pension or Annuity end-of-year 1099 form
• Interest Income end-of-year 1099 form
• IRA Income
• Disability letter from Social Security or Doctor
• Unemployment Benefits
• VA Disability Letter
• Military Benefits
• Life Estate Documents
• Revocable, Irrevocable or Living Trust Documents
• Receipts of any other income you might be receiving within your household (this includes rentals)
• If taxes are filed - IRS Tax Return or an official IRS Transcript (bring all pages)
• Receipts for all deductions

Allowable Deductions

After combining the disposable income of yourself, your spouse/domestic partner, and any co-tenants, deduct non-reimbursed amounts paid by you or your spouse/domestic partner for: 

• Living in a nursing home, assisted living facility, or adult family home.
• Prescription drugs.
• In-home care that is similar to the care you would receive in a nursing home.
  • In-home care includes:
    • Medical treatment.
    • Physical therapy.
    • Household care.
    • Personal care. Personal care includes assistance with:
      • Preparing meals.
      • Getting dressed.
      • Eating.
      • Taking medications.
      • Personal hygiene.
• Premiums for Medicare Parts A, B, C, and D.
• Premiums for Medicare supplemental policies (Medigap).
• Durable medical and mobility enhancing equipment.
• Prosthetic devices.
• Medically prescribed oxygen.
• Long-term care insurance.
• Cost-sharing amounts (amounts applied to your health plans out of pocket maximum amount).
• Medicines of mineral, animal, and botanical origin if prescribed, administered, dispensed, or used in the treatment of an individual by a naturopath licensed in Washington.
• Ostomic items.
• Insulin for human use.
• Disposable devices used to deliver drugs for human use. 

Deductions listed below this point are only available for the 2022 Tax Year forward:

• Premiums for Medicare supplemental policies (Medigap).
• Durable medical and mobility enhancing equipment. Click Here for List
• Prosthetic devices. Click Here for List
• Medically prescribed oxygen.
• Long-term care insurance.
• Cost sharing amounts (amounts applied to your health plans out of pocket maximum amount).
• Medicines of mineral, animal, and botanical origin if prescribed, administered, dispensed, or used in the treatment of an individual by a naturopath licensed in Washington.
• Ostomic items.
• Insulin for human use.
• Disposable devices used to deliver drugs for human use

Application Submittal

You can mail your information to the Assessor's office, or drop off your application in person at either the Coupeville or Camano Annex.

• Coupeville Street address – 1 NE 7th Street, Suite 208
• Coupeville Mailing address – 1 NE 7th Street, Coupeville WA 98239
• Camano Annex address – 121 NE Camano Drive

If you have any questions regarding the exemption program, contact Kayla Quiroga at the Island County Assessor's office at 360-678-7853.

What Happens After I Submit my Application?

Your application will be processed in the order that it is received. A letter will be mailed to the applicant. The letter will advise the applicant if their application was approved or denied. If you receive an approval, the letter will also specify your Tier within the program. See the table below.

The 2023 Legislature passed Substitute House Bill 1355, which makes changes to property tax exemptions and deferral programs for senior citizens, persons with disabilities, and disabled veterans. In Island County, the income levels will change for the 2024 property tax year to the following.

Renewals

Currently, the renewal of your senior and disabled property tax exemption is once every five years in Island County, once you get on the rotation schedule. For example, a new applicant in 2021 who lives in the Cycle area 2 will renew in 2023 and then again in 2028. Our office will mail you the renewal form.

• If you live in Cycle area 1, you will renew in 2022
• If you live in Cycle area 2, you will renew in 2023
• If you live in Cycle area 3, you will renew in 2024
• If you live in Cycle area 4, you will renew in 2025
• If you live in Cycle area 5, you will renew in 2026

Change in Status

If one of the following changes occur, you are required notify the Assessor's Office by submitting a Change in Status form.

•  Change in income level
• Change in living circumstances
• Death of a spouse, domestic partner or applicant
• Change of principal residence
• Death of eligible applicant (survivors must notify the Assessor's office)
• Sale or Ownership Transfers (transfer to a trust may affect eligibility)
• Change in disability status
• Change in marital status

Appeals

An applicant may appeal an exemption denial to the county Board of Equalization within 30 days of the date of the determination. An applicant may also appeal if the applicant disagrees with the level of exemption as determined by the assessor. The same holds true when the applicant disagrees with the assessor's determination regarding exclusion of a portion of the property.

•  Island County Board of Equalization
  • Web Page
  • Email   
  • 360-678-7853

Reporting/documentation requirements:

• Exemption Application (property taxes due in 2022 and forward) PDF
• Renewal Application PDF
• Change in Status Form PDF
• Combined Disposable Income Worksheet PDF
• Exemption Application (property taxes due in (2021 and 2019) PDF
• Exemption Application (property taxes due in 2020) PDF
• Proof of Disability Statement DOC
• Examples of Prosthetics, Durable Medical and Mobility Enhancing Equipment
• Property Tax Exemption Program for Senior Citizens and People with Disabilities Brochure
• Department of Revenue Senior Citizens and People with Disabilities Website

For questions regarding the exemption program

• contact Kayla Quiroga at the Island County Assessor's office at 360-678-7853.

Under the Deferral Program, the Washington State Department of Revenue pays the property taxes and/or special assessments on your behalf.

You must first apply for the Senior/Disabled Exemption to reduce your taxes before applying for the Deferral Program. Minimum qualifications for the Deferral Program are 60 years of age by December 31 of the year you are applying or disabled, must own the home, reside in the home for more than 6 months out of the year, and have income less than $45,000. A person who has only a share ownership in cooperative housing, a life estate, a lease for life, or a revocable trust does not satisfy the ownership requirement. An irrevocable trust may meet the ownership qualification.

The deferred amount, plus interest (5% a year), becomes a lien in favor of the state until the total amount is repaid. Property tax deferral is available for property taxes and /or special assessments on your primary residence and up to five acres of land. Mobile homes may qualify even if the land where the mobile home is located is leased or rented.

Available to:

Taxpayers who are at least 60 years of age or older by December 31 of the year the application for deferral is filed; OR retired from regular gainful employment by reason of disability.

Program benefits:

For the qualifying applicant, the laws governing this program allow payment of property taxes and special assessments for current and delinquent years. The deferred amount accrues 5% simple interest until repayment is complete. Deferrals must be repaid when the home is sold, the applicant passes away, or the home is no longer used as the primary residence.

Qualifying activity:

Own and occupy a primary residence in the State of Washington; have enough equity to secure the interest of the State of Washington in the property; and have a combined disposable income equal to or less than the Deferral Threshold. Beginning in 2020, Deferral Threshold is based on the county median household income of the county where the residence is located.

Reporting/documentation requirements:

• Completion of Deferral Application for Senior Citizens and People with Disabilities and a Combined Disposable Income Worksheet.
• Disabled person must provide written acknowledgment by Social Security or Veterans Administration or Proof of Disability Affidavit.

Special notices & publications:

• Property tax deferral for senior citizens and people with disabilities

Available To:

A widow or widower of a veteran who died as a result of a service-connected disability; OR was rated 100% disabled by VA for 10 years prior to death; OR was a former POW and rated 100% disabled for 1 year prior to death; OR died in active duty or training status. The widow/widower must be at least sixty-two years of age by December 31 of the year the taxes are due OR be retired from regular gainful employment by reason of disability. The widow/widower must not have remarried.

 Program Benefits:

The qualifying applicant receives assistance for payment of property taxes in the form of a grant. The assistance amount is based on the applicant’s income, the value of the residence, and the local levy rates. The grant does not have to be repaid as long as the applicant continues to live in the residence until at least December 15 in the year a grant is received.

 Qualifying Activity:

Own and occupy a primary residence in the State of Washington; have combined disposable income of $40,000 or less

Reporting/Documentation Requirements:

• Completion of Property Tax Assistance Claim Form for Widows/Widowers of Veterans and a Combined Disposable Income Worksheet.
• Disabled person must provide written acknowledgment by Social Security or Veterans Administration – OR – Proof of Disability Affidavit.

Special notices & publications

• Property tax assistance program for widows or widowers of veterans

Under the Deferral Program, the Washington State Department of Revenue pays the property taxes and/or special assessments on your behalf.

The deferred amount, plus interest (2% a year), becomes a lien in favor of the state until the total amount is repaid. This deferral is to assist in paying your second half taxes. In order to apply for this Deferral your first half property taxes must be paid in full. Property tax deferral is available for property taxes and /or special assessments on your primary residence and up to five acres of land. Mobile homes may qualify even if the land where the mobile home is located is leased or rented.

Available To:

Homeowners with combined disposable income of $57,000 or less.

Program Benefits:

For the qualifying applicant, the laws governing this program allow payment of the second half property tax installment due in October of the current year. Applications are due by September 1. The deferred amount accrues simple interest until repayment is complete. The interest rate varies and is based on an average of the federal short-term rate, plus 2 percent. The application form provides the rate for the current year. Deferrals must be repaid when the home is sold, the applicant passes away, or the home is no longer used as the primary residence.

Qualifying Activity:

Own home in Washington for five years; occupy as a primary residence; have combined disposable income of $57,000 or less; and have enough equity to secure the interest of the State of Washington in the property.

Reporting/Documentation Requirements:

• Completion of Deferral Application for Homeowners with Limited Income and a 
• Combined Disposable Income Worksheet.

Special notices & publications

• Property tax deferral for homeowners with limited income

Available To:

Qualifying organizations conducting an activity specifically identified in Chapter 84.36 of the Revised Code of Washington. Not all nonprofits have a purpose and activity that entitles them to an exemption. The use of the property determines the exemption. Typical organizations receiving property tax exemption are schools, churches, cemeteries, hospitals, social service agencies, character building organizations, nursing homes, homes for the aging, museums, performing arts facilities, and public meeting halls.

Program Benefits:

The qualifying organizations receive abatement (exemption) of their property taxes. Special assessments are not eligible for this exemption. Please note: Property tax exemptions are only applicable to real and personal property located in Washington State.

Qualifying Activity:

Nonprofit organizations, even though they may be exempt from federal taxes, are not generally exempt from taxes in Washington. Typically, organizations must own and exclusively use their property to conduct an activity specifically exempted by the Legislature to qualify for the exemption.

Reporting/Documentation Requirements:

• Completion of an initial Application for Property Tax Exemption
• Annually on or before March 31
  • Submit a renewal declaration online (instructions) OR
  • Call 360-534-1372 to request a renewal declaration via mail.
• Report any changes in use or ownership of the property within 60 days.

Special notices & publications

• Application for Property Tax Exemption
• Property Tax Exemption for Nonprofits: Administrative Offices of a Religious Organization (informational brochure)
• Property Tax Exemption for Nonprofits: Emergency or Transitional Housing (informational brochure)
• Property Tax Exemption for Nonprofits: Churches (informational brochure)
• Property Tax Exemptions for Nonprofits: Social Service Organizations (informational brochure)